India’s largest conglomerate is reeling from the shock resignation of its chairman, who leaves a vacuum just as the coffee-to-cars group executes a massive reinvestment program over the next five years.
Natarajan Chandrasekaran’s decision to step down in February jeopardizes Tata Sons Pvt.’s $120 billion wager on future growth and brings an abrupt end to nearly a decade of leadership that helped push India into more advanced technologies. Some of the conglomerate’s current and planned projects could slow down, be scaled back or stretch out longer as it awaits new leadership, said people familiar with the matter who asked not to be identified as the details aren’t public
That’s especially true as Chandra’s exit leaves Noel Tata, the chairman of Tata Trusts, as kingmaker to manage the transition at the top of the group’s holding company. Noel has in recent months pushed back against the Chandra-led spending spree, amounting to $120 billion over the next five years, favoring more measured capital spending with quicker payout horizons.
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The tension between the two men has now come to a head, and will ripple across the country. Tata is in many ways a proxy for India’s broader economy, with brands ranging from Jaguar Land Rover luxury cars and the Taj hotel chain to Air India and everyday staples like Tetley tea. Beyond consumer-facing businesses, the group has placed strategic bets on everything from semiconductors and electric car batteries to AI data centers. That makes it a crucial partner for Prime Minister Narendra Modi’s agenda to recast India as a global manufacturing power.
The Tata Group didn’t immediately respond to a request for comment.
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“The ball is now firmly in Noel Tata’s court,” said Kranthi Bathini, a Mumbai-based equity strategist at WealthMills Securities Pvt. “Replacing a technocrat of Chandrasekaran’s caliber, someone sharply attuned to rapidly shifting technological landscapes, will be a formidable challenge.
